Projected home equity growth
Property value minus projected secured debt
United States · USD
Home equity calculator.
Estimate how much of your home you own and explore how much equity may remain available under a selected borrowing limit.
Target-equity timeline
Estimated from the projection assumptions above
Selected target—
Current projected starting point—
Estimated target date—
Gap to target—
Home-value sensitivity
Estimated equity after proposed borrowing and planned principal paydown
| Value change | Property value | Secured debt | Home equity | Equity percentage | Combined LTV |
|---|
Year-by-year equity projection
Includes estimated first-mortgage amortization and the proposed home-equity loan
| Year | Property value | First mortgage | Home-equity loan | Total secured debt | Home equity | Combined LTV |
|---|
Planning estimate only—not an appraisal, credit decision or commitment to lend. A lender may use a different property value and CLTV method. Interest, payments, product fees and tax consequences are not calculated.
U.S. homeowner guide
How much equity do you have in your home?
Home equity is the current property value minus mortgages and other loans secured by the home. Equity can increase as principal is repaid or the property appreciates, and it can decrease when values fall or additional debt is secured against the property.
Total equity versus borrowable equity
Total equity is an ownership calculation. Borrowable equity is a planning estimate that retains the percentage required by a selected maximum combined LTV. A lender may permit more or less depending on the product, occupancy, credit, income and property.
The proposed scenario shows how new debt affects equity and CLTV before estimated costs are deducted from cash proceeds.
Home equity
Subtract all current secured-loan balances from the estimated property value.
Available HELOC credit
Unused HELOC credit is its limit minus the outstanding balance. It differs from newly borrowable equity.
CLTV and HCLTV
CLTV generally uses outstanding debt, while HCLTV can use the full HELOC line when measuring exposure.
Cash proceeds
Borrowing costs reduce the cash received but usually do not reduce debt by the same amount.
How property values affect equity
Equity estimates depend heavily on property value. Use the sensitivity table to see how a decline or increase changes equity and CLTV. A lender may require an appraisal or other accepted valuation.
For ratio targets, use the LTV calculator. To compare replacing an existing mortgage, use the refinance calculator.
Home equity questions
How is home equity calculated?
Subtract first-mortgage, second-mortgage and outstanding HELOC balances from current property value.
Can I borrow all of my home equity?
Usually not. Lenders commonly require equity to remain and apply product-specific CLTV, credit, income and property standards.
What is the difference between a HELOC and a home-equity loan?
A HELOC is generally revolving credit, while a home-equity loan generally advances a lump sum. Terms and rate structures vary.
Does unused HELOC credit reduce equity?
An undrawn credit line does not reduce dollar equity, but the full limit may be considered in HCLTV.
Can home equity become negative?
Yes. Negative equity occurs when secured debt exceeds current property value.